The 33 meters (108 ft) high nine storied octagonal tower of Baba Atal Rai, located few miles away from the main city on the south-east of the Golden Temple is the tallest tower in Amritsar. This significant landmark of the city was built during the year 1778 - 1784 in memory of the sixth Sikh teacher, Guru Hargobind and his youngest son, Baba Atal Rai. Originally it was built as a samadhi, or cenotaph that enshrines the remains of Atal Rai and Guru Hargobind and with the passage of time, it was transformed into a Gurudwara. Although Atal Rai died at the age of nine, he was honoured with the title of Baba for the extraordinary powers he had displayed. The present nine-storey building represents the nine years of Baba Atal's life.

Baba Atal Rai Tower is not only a mere religious site but it has emerged as one of the favorite hangouts for the tourists. The first floor of this tower is elaborately adorned with miniature works depicting Guru Nanak's life. From the top of the tower, one can view the scenery of the whole area.